Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.

HUD Announces Disaster Relief For Puerto Rico

The Department of Housing and Urban Development has announced federal disaster relief for natural disaster victims in Puerto Rico. According to a press release on the FHA/HUD official site, the following municipalities have been declared major disaster areas:

Those in a federally declared disaster area have options for relief from agencies including FEMA, the FHA, and HUD. According to the press release, “HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home”.

That is not the only help available to those in the affected areas. In addition to a general 90-day moratorium on foreclosure actions on FHA loans, there are other types of FHA loans available to help home owners repair or replace houses damaged or destroyed by a natural disaster.

The FHA 203(h) rehab loan program is for both purchase and refinance loans, and can be used in conjunction with FHA 203(k) loans. The 203(h) program is specifically for those who need help in federally declared disaster areas, and certain features of this type of loan (such as the zero down payment option) are not found in non-disaster relief type FHA home loans.

Home owners who have damaged or destroyed property in federally declared disaster areas should contact FEMA, their lenders, insurance agents and other providers as quickly as possible following the damage. It’s not safe to assume that your loan payments are no longer due because a home is not inhabitable.

It will be up to the home owner and the lender to work out arrangements and begin the recovery process. It is also not advisable to rush into insurance settlements without a chance to properly evaluate the damage, the financial impact of that damage, and what it may take to repair or replace the home.

Borrowers who live in areas damaged by a natural disaster but that have not been declared a federal disaster area should contact their participating lender to see what options are open to them in the form of foreclosure relief, loan forbearance, rehab/repair loans, and other options. Some areas may later be declared as major disaster zones, depending on the nature and severity of the damage in that area, and how soon the damage can be evaluated.

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.

About FHANewsBlog.com FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

5850 San Felipe Suite #500, Houston, TX 77057 281-398-6111. FHANewsBlog.com is privately funded and is not a government agency.

FHAnewsblog.com is a private company, not affiliated with any government agency, is not a lender and does not offer to make loans. We provide online news and information about mortgages and loans products generally. The opinions presented on FHAnewsblog.com should not be construed as representing the official opinions of any government agency. We do not offer or have any affiliation with loan modification, foreclosure prevention, payday loan, or short-term loan services. Neither FHAnewsblog.com nor its advertisers charge a fee or require anything other than a submission of qualifying information for comparison shopping ads.

The posted content contained on FHAnewsblog.com is for general information purposes only and is accurate and true to the best of our knowledge. The information should not be seen as financial advice and you should consult with a licensed mortgage professional , prior to taking any action. We do not ask users to surrender or transfer title. We do not ask users to bypass their lender. We encourage users to contact their lawyers, credit counselors, lenders, and housing counselors. FHAnewsblog.com assumes no responsibility for errors or omissions in the contents on the Service. You agree that you are solely responsible for your own financial decisions, and release FHAnewsblog.com from any liability whatsoever regarding our Service or any causes of action arising from or relating to our Service.